In an investment round headed by Framework Ventures and featuring Nascent, 1kx, Volt Capital, Breed VC, and Robot Ventures, the startup raised $7 million. According to Spearbit providing security consulting to web3 users company’s co-founder Spencer Macdonald, the funding will be used to expand Cantina, an open marketplace for Web3 security auditors, as well as hire more software developers to simplify its services and product marketplace workflow.
Spearbit Providing Security Consulting to Web3 Users Raises 7 Million Dollars to Improve Safety Audits in Crypto
The firm has already raised $1.5 million in a pre-seed round, bringing its total funding raised to $8.5 million as of this writing. Although the startup withheld its valuation, PitchBook data estimates its post-money value at about $48 million.
The platform’s short-term objective is to release two products: Cantina Guilds, a small-to-medium audit business that specializes in a particular industry and will host its services as a “guild” on the platform, and Cantina Managed Service, which intends to assist solo auditors in getting deal flow and performing smart contract audits.
Right now, there’s no price transparency. If you go to these centralized auditing firms, they say, ‘Hey, this is the price. deal with it,’ it takes weeks to get a quote, and there’s no way to figure out who’s best for a particular tech stack. and on the talent side, auditors at these firms are very talented but have no work-life balance and it’s like a sweatshop because they audit continuously.
Macdonald
Spearbit Aims to Help Auditors Earn More
By saving more money for the auditors themselves, Spearbit hopes to reverse the tendency of audit companies to maintain the majority of their margins. Only 20 to 30 percent goes to the Cantina.
That’s a huge change because it’s the same talent pool in this community since day one that are former employees of these (firms).
Macdonald
According to the co-founder of Spearbit, Hari Mulackal, the cryptographic security auditing market is currently somewhat fragmented. Curve Finance experienced a $62 million fraud just last week.
We were disappointed by the state of security in the ecosystem with hacks every week. There’s a big need for security in the space and there wasn’t enough (being done), so we wanted to solve our own problems and create something to fix it.
Mulackal
About Spearbit
With three of its five founders hailing from the Ethereum Foundation, Spearbit was established in November 2021 with the goal of bridging the gap between independent researchers interested in crypto protocols and businesses in need of security assessments. Over a hundred researchers who are available for hire on its marketplace have now been screened and trained by the company.
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